Question: Profitability Analysis Albion Inc. provided the following information for its most recent year of operation. The tax rate is 40 percent.
Required: 1. Compute the following:
(a) return on sales,
(b) return on assets,
(c) return on stockholders' equity,
(d) earnings per share,
(e) price-earnings ratio,
(f) dividend yield, and
(g) dividend payout ratio.
2. Conceptual Connection: If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain.